Some Rules Changed On Social Security

SOCIAL SECURITY

December 30, 1994|John Raffa

President Clinton signed the Social Security Independence and Program Improvements Act on Aug. 15, establishing Social Security as an independent agency. In addition to separating Social Security from the Department of Health and Human Services, the act also contains several provisions. They include the following rules:

-- Effective Jan. 1, election workers and officials may not be required to pay Social Security or Medicare taxes on wages of less than $1,000 a year. Currently, earnings of $100 and over (but as low as $50 in some states) are subject to taxes if the states have a coverage agreement with SSA.

-- Ministers who were U.S. citizens and residents of Canada and who did not pay Social Security self-employment tax for taxable years 1979-1984 because they paid taxes to the Canadian Social Security system will be exempt from paying back taxes and penalties to the Internal Revenue Service for those years. Those qualifying must file a certificate with IRS within 180 days after IRS issues the regulation implementing the provision.

-- Wages paid to aliens who hold "Q" visas issued by the Immigration and Naturalization Service do not have to pay Social Security tax on their earnings. These visas are issued to aliens who visit the United States for a period of less than 15 months as participants in cultural exchange programs.

-- Federal employees who normally contribute to Social Security in their regular jobs and who are temporarily transferred to work in an international organization will continue to pay Social Security.

-- Unauthorized disclosure of information contained in Social Security files and fraudulent attempts to obtain personal information under the Social Security Act is now a felony.

-- The extension time that can be granted for filing an annual earnings report to Social Security has been extended from three to four months. Annual earnings reports must be filed by people under 70 who receive Social Security benefits, work, and earn over a certain amount.

-- People who receive both Social Security and Supplemental Security Income (SSI) and are getting Medicaid because they get SSI will not lose their Medicaid coverage when an annual Social Security cost-of-living increase causes their SSI to stop.

-- The formula used to calculate benefits for workers who are eligible to receive Social Security based on work in the United States and work in certain foreign countries will be the same as the regular one used to calculate the benefits of beneficiaries who do not have foreign work.

Social Security appears on Fridays in Palm Beach Plus. John Raffa is a field representative for the Social Security Administration. Write him at the Social Security Administration, Box 24678, West Palm Beach, Fla. 33416